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(ABN 22 102 912 783)
AND CONTROLLED ENTITIES
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2020
CAULDRON ENERGY LIMITED
CORPORATE INFORMATION
NON-EXECUTIVE CHAIRMAN
Simon Youds
EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER
Jess Oram
NON-EXECUTIVE DIRECTORS
Qiu Derong
Judy Li
Simon Youds
Chenchong Zhou
COMPANY SECRETARY
Michael Fry
PRINCIPAL & REGISTERED OFFICE
Unit 47, Level 2
1008 Wellington Street
West Perth WA 6005
Telephone: (08) 6270 4693
Website: www.cauldronenergy.com.au
AUDITORS
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
SHARE REGISTRAR
Advanced Share Registry
110 Stirling Hwy
Nedlands WA 6009
Telephone: (08) 9389 8033
Facsimile: (08) 9262 3723
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: CXU
BANKERS
National Australia Bank
100 St Georges Terrace
Perth WA 6000
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CAULDRON ENERGY LIMITED
CONTENTS
DIRECTORS’ REPORT ................................................................................................. 1
AUDITOR’S INDEPENDENCE DECLARATION .................................................................. 15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........................................... 16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................. 17
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................. 18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................. 19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................. 20
DIRECTORS' DECLARATION ....................................................................................... 46
INDEPENDENT AUDITOR’S REPORT ............................................................................. 47
ASX ADDITIONAL INFORMATION ................................................................................ 51
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
DIRECTORS’ REPORT
Your directors present their report together with the financial report on the Group consisting of Cauldron
Energy Limited (“Cauldron” or “the Company”) and its controlled entities (“the Group”) for the
financial year ended 30 June 2020 and the auditors’ report thereon.
In order to comply with the provisions of the Corporations Act 2001, the directors report as follows.
DIRECTORS
The names and particulars of the directors of the Company in office at the date of this report are:
Mr Simon Youds
Non-Executive Director and Chairman
Appointed on 15 March 2019
B.Eng (Mining), MBA, AUSIMM Member
Mr Simon Youds was appointed as a Non-Executive Director and Chairman effective 15 March 2019. Mr
Youds is currently the Chief Executive Officer of ASX-listed company Vector Resources Ltd. He is former
Chief Executive Officer of African Iron, an iron ore explorer in the Republic of Congo, where he facilitated
a A$388 million deal for its purchase by Exxaro Resources. In other highlights, Mr Youds was
Managing Director, Australia, of Consolidated Minerals Limited, which owned and operated the Woodie
Woodie and Coobina manganese and chromite mining operations, located in the Pilbara region of
Western Australia. Mr Youds also spent five years working as a member of the WMC team at Olympic
Dam in South Australia developing the world’s largest uranium deposit. Further in Africa Mr Youds held
various operating and development roles at the Bibiani Gold Mine in Ghana and the Bulyanhulu and
North Mara Gold Mines in Tanzania. Mr Youds has a Bachelor of Engineering (B.Eng) in Mining and
holds an MBA degree from Deakin University, Victoria, and is a member of the Australasian Institute
of Mining and Metallurgy.
Directorships of listed companies held within the last 3 years: Nil
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
4,172,864 Fully Paid Ordinary Shares
Nil
4,000,000
Mr Jess Oram
Executive Director and Chief Executive Officer
Appointed on 1 January 2018
B.Sc, AIG member
Mr Jess Oram was appointed as Chief Executive Officer and Executive Director effective 1 January 2018.
Since April 2014, Mr Oram has served the Company as Exploration Manager. Mr Oram has over 25
years’ experience in mineral exploration in a wide variety of geological terrains and resource
commodities with an accomplished track record in establishing and leading the exploration function of
several companies. In uranium, Mr Oram was Chief Exploration Geologist for Heathgate Resources Pty
Ltd where he was involved in mining feasibility studies of the Four Mine Uranium deposits and ‘team
leader’ of a group of geoscientists involved in the discovery of the Pepegoona Uranium, Pannikan
Uranium and Pannikan West Uranium deposits. Mr Oram has a Bachelor of Science (B.Sc), Geology
major from the University of Queensland and is a member of the Australian Institute of Geoscientists
(AIG).
Directorships of listed companies held within the last 3 years:
Force Commodities Limited
(February 2019 to present)
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
Nil
Nil
2,000,000
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1
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
Mr Qiu Derong
Non-Executive Director
Appointed on 6 November 2009
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Mr Qiu is a highly experienced industrialist with more than 30 years’ experience in the architecture,
construction and real estate industries in China as well as over 20 years of experience in the
management of enterprises and projects throughout the country.
Mr Qiu has a MBA obtained from the Oxford Commercial College, a joint program operated by Oxford
University in China.
Directorships of listed companies held within the last 3 years: Nil
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
Ms Judy Li
Non-Executive Director
Appointed on 17 December 2014
47,544,710 Fully Paid Ordinary Shares
Nil
1,000,000
Ms Judy Li has over 10 years of extensive international trading experience in hazardous chemical
products. She has also been involved in international design works for global corporates and government
clients while working for Surbana that has been jointly held by two giant Singapore companies -
CapitaLand and Temasek Holdings. Throughout her career, Judy has contributed to building tighter
relationship between corporates and governments. Judy earned her masters degree in art with Honors
Architecture from University of Edinburgh in the United Kingdom.
Directorships of listed companies held within the last 3 years: Nil
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
Mr Chengchong Zhou
Non-Executive Director
Appointed on 2 May 2017
Nil
Nil
1,000,000
Mr Chengchong Zhou is an experienced financial analyst in the materials and energy sector. In his
career, Mr Zhou covers an extensive list of junior to mature mining companies and has developed a
good understanding of industry financing. Mr Zhou received his Bachelor of Science in Economics degree
from Wharton Business School in 2013.
Directorships of listed companies held within the last 3 years: Nil
Interest in Shares:
Interest in Options:
Interest in Performance Rights:
Nil
Nil
1,000,000
Directors have held office since the start of the financial year to the date of this report unless otherwise
stated.
COMPANY SECRETARY
Michael Fry was appointed Company Secretary of Cauldron on 15 April 2019. Michael holds a Bachelor
of Commerce degree from the University of Western Australia and has worked in a variety of senior
accounting and advisory roles for over 20 years.
2
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
REMUNERATION REPORT (AUDITED)
This remuneration report, which forms part of the directors’ report, sets out information about the
remuneration of Cauldron’s directors for the financial year ended 30 June 2020.
KEY MANAGEMENT PERSONNEL
Key Management Personnel includes:
▪
▪
▪
▪
▪
Simon Youds (Non-executive Chairman)
Jess Oram (Chief Executive Officer and Executive Director)
Qiu Derong (Non-executive Director)
Judy Li (Non-executive Director)
Chenchong Zhou (Non-executive Director)
The named persons held their positions for the duration of the financial year and up to the date of this
report, unless otherwise indicated.
REMUNERATION POLICY
The remuneration policy of Cauldron has been designed to align director objectives with shareholder
and business objectives by providing a fixed remuneration component which is assessed on an annual
basis in line with market rates.
Cauldron’s board believes the remuneration policy to be appropriate and effective in its ability to attract
and retain appropriately skilled directors to run and manage the Group, as well as create goal
congruence between directors and shareholders.
During the year, the Company did not have a separately established remuneration committee. The
Board is responsible for determining and reviewing remuneration arrangements for the executive and
non-executive directors. The Board assesses the appropriateness of the nature and amount of
remuneration of such officers on a yearly basis by reference to relevant employment market conditions
with the overall objective of ensuring maximum stakeholder benefit from retention of a high quality
board. Due to the size of the business, a remuneration consultant is not engaged in making this
assessment.
The board policy is to remunerate non-executive directors at market rates for comparable companies
for time, commitment and responsibilities. The executive director determines payments to the non-
executive directors and reviews their remuneration annually, based on market practice, duties and
accountability.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to
approval by shareholders at the Annual General Meeting. Shareholders approved the maximum total
aggregate fixed sum per annum to paid to non-executive directors be set at $750,000 at the 2015
Annual General Meeting. Fees for non-executive directors are not linked to the performance of the
Group. However, to align directors’ interests with shareholder interests, the directors are encouraged
to hold shares in the Company.
REMUNERATION REPORT AT 2019 AGM
The 2019 remuneration report received positive shareholder support at the 2019 Annual General
Meeting whereby of the proxies received 99.86% voted in favor of the adoption of the remuneration
report.
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3
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
COMPANY PERFORMANCE AND SHAREHOLDER WEALTH
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Below is a table summarizing key performance and shareholder wealth statistics for the Group over the
last five financial years.
Financial Year
30 June 2016
30 June 2017
30 June 2018
30 June 2019
30 June 2020
Profit/(loss)
after tax
$
Earnings/(loss)
per share
(cents)
Company
Share Price
(cents)
(3,978,324)
(11,954,682)
173,299
(3,197,797)
(1,634,616)
(1.49)
(3.83)
0.05
(0.97)
(0.47)
6.6
3.4
3.0
1.7
1.6
The remuneration policy has been tailored to increase goal congruence between shareholders and
directors. This has been achieved by the issue of performance rights to directors to encourage the
alignment of personal and shareholder interest.
KMP REMUNERATION AND KMP INTEREST IN SECURITIES
Key Management Personnel (KMP) remuneration for the year ended 30 June 2020 was:
30 JUNE 2020
SHORT-TERM
BENEFITS
LONG-TERM
BENEFITS
POST EMPLOYMENT
SHARE
BASED
PAYMENTS
TOTAL
Remunera
-tion
performa-
nce based
Directors
Simon Youds (i)
Jess Oram (ii)
Qiu Derong (iii)
Judy Li (iv)
Chenchong Zhou (v)
TOTAL
Salary,
Fees &
Leave ($)
48,000
229,388
36,000
36,000
36,000
385,388
Other
($)
Long Service
Leave ($)
Super-
annuation
($)
Retirement
Benefits ($)
(vi)
$
$
%
-
-
-
-
-
-
-
3,706
-
-
-
-
20,235
-
-
-
3,706
20,235
-
-
-
-
-
-
4,237
2,119
1,059
1,059
1,059
52,337
255,448
37,059
37,059
37,059
8.10%
0.83%
2.86%
2.86%
2.86%
9,533
418,962
17.51%
(i)
(ii)
(iii)
(iv)
(v)
(vi)
In his capacity as Non-Executive Chairman, Mr Simon Youds is entitled to a fee of $48,000 per annum from the date of his
appointment (15 March 2019). The Company has entered into a consulting agreement with Youds Mining Consulting Pty Ltd,
a company controlled by Mr Simon Youds, for the provision of these services.
Mr Jess Oram is an employee of Cauldron. Upon his appointment as Chief Executive Officer and Executive Director of the
Company, effective 1 January 2018, Mr Jess Oram is entitled to $213,000 plus superannuation. In addition, Mr Jess Oram
was entitled to a bonus for the year ended 30 June 2019 of up to $26,100 (inclusive of superannuation) subject to
achieving either:
(a) KPI 1 and KPI 2 and KPI 3; or
(b) KPI 4,
whereby, KPIs are defined as follows:
KPI 1: Secure title to the core exploration ground at Bennet Well
KPI 2: Complete either of the following:
▪
▪
Secure an exploration project, that may or may not be offshore; or
Commence the FLT at Bennet Well, and raising of funding
(c) KPI 3: Reduce cost of non-core projects
(d) KPI 4: WAP of CXU shares traded on ASX over 10 days being equal to or exceeding $0.20.
The performance-based bonus was not achieved in the year ended 30 June 2019. No bonus arrangement was set for the
year ended 2020 and as such Mr Oram earned no bonus remuneration in the year ended 30 June 2020.
In his capacity as Non-Executive Director, Mr Qiu Derong is entitled to a fee of $36,000 per annum. The Company has
entered into a consulting agreement for the provision of these services. Amounts included in this table represent accrued
fees.
In her capacity as Non-Executive Director, Ms Judy Li is entitled to a fee of $36,000 per annum. The Company has entered
into a consulting agreement for the provision of these services.
In his capacity as Non-Executive Director, Mr Chenchong Zhou is entitled to a fee of $36,000 per annum. A consulting
agreement for the provision of services is yet to be executed. Amounts included in this table represent accrued fees.
At a Board meeting held on 21 May 2020, the Directors resolved to issue, subject to shareholder approval, performance rights
to each of its directors as listed below. Each performance right has the right to convert into one fully paid ordinary share
subject to meeting stated performance conditions and the terms of the Company’s Performance Rights Plan. At a general
meeting of the Company held on 11 August 2020, shareholders approved the issue of the performance rights. For
remuneration purposes, the entitlement is calculated from the date of the Directors’ resolution on 21 May 2020:
Name of Director
Simon Youds
Jess Oram
Qiu Derong
Judy Li
Chenchong Zhou
Number
4,000,000
2,000,000
1,000,000
1,000,000
1,000,000
9,000,000
4
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
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Key Management Personnel remuneration for the year ended 30 June 2019 was:
30 JUNE 2019
SHORT-TERM
BENEFITS
LONG-TERM
BENEFITS
POST EMPLOYMENT
SHARE
BASED
PAYMENTS
TOTAL
Remunera
-tion
performa-
nce based
Directors
Antony Sage (i)
Simon Youds (ii)
Jess Oram
Qiu Derong
Judy Li
Nicholas Sage (iii)
Chenchong Zhou
TOTAL
Salary,
Fees &
Leave ($)
60,000
12,000
226,164
36,000
36,000
23,500
36,000
429,664
Other
($)
Long Service
Leave ($)
Super-
annuation
($)
Retirement
Benefits ($)
$
$
%
-
-
-
-
-
-
-
-
-
-
4,343
-
-
-
-
-
-
20,235
-
-
-
-
4,343
20,235
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,000
12,000
250,742
36,000
36,000
23,500
36,000
454,242
-
-
-
-
-
-
-
-
(i) Mr Sage resigned as Non-Executive Chairman on the 22 November 2018.
(ii) Mr Simon Youds was appointed on 15 March 2019.
(iii) Mr Nicholas Sage retired as a Non-Executive Director on 25 February 2019.
Shareholdings of Key Management Personnel
30 JUNE 2020
Directors
Qiu Derong
Simon Youds
Balance
1 July 2019
Issued
Received on
option exercise
Net Change
Other
Balance
30 June 2020
47,544,710
4,172,864
51,717,574
-
-
-
-
-
-
-
-
-
47,544,710
4,172,864
51,717,574
Option-holdings of Key Management Personnel
There were no options held by key management personnel at 30 June 2020 (30 June 2019: nil), nor
were there any options granted, exercised or lapsed during the year ended 30 June 2020.
Performance Rights of Key Management Personnel
During the financial year the Company granted performance rights as a long-term incentive to directors
which have been issued under the Performance Rights Plan. Each performance right will vest as an
entitlement to one fully paid ordinary share upon achievement of certain performance milestones. If the
performance milestones are not met, the performance rights will lapse and the eligible participants will
have no entitlement to convert the performance rights into any ordinary shares.
Performance rights are not listed and carry no dividend or voting rights. Upon exercise, each
performance right is convertible into one fully paid ordinary share to rank pari passu in all respects with
existing fully paid ordinary shares.
Movement in the performance rights for the current period is shown below:
Issue date
Expiry date
Exercise price
Number
16 September 2020
10 August 2025
Nil
9,000,000
The Performance Rights were valued on the date of measurement with the following factors and
assumptions used to determine their fair value:
Grant Date
Measurement
Date
Expiry Date
Issue
Date
Granted during
the year
Balance at
period end
11-Aug-201
21-May-201
10-Aug-25
16-Sep-20
9,000,000
9,000,000
1 Performance rights granted to Directors were approved by shareholders on 11 August 2020, however the
contractual arrangement between the Company and the directors occurred on 21 May 2020 when the terms of the
performance rights were agreed.
5
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
Fair value determined as follows:
No. Granted
Exercise
Price
Expected
Vesting Period
Share price
on Grant
Date
Fair Value per
Performance
Right
Total Fair
Value
9,000,000
-
21-May-20 to 21-
May-23
$0.029
$0.029
$261,000
Milestones associated with the performance rights are as follows:
a.
b.
c.
Milestone 1: The volume weighted average price of the Shares as quoted on ASX exceeds $0.05
each day for a period of not less than 20 consecutive trading days on which the Shares have
actually traded; or
Milestone 2: Gross Proceeds exceed $250,000 in any financial year; or
Milestone 3: The discovery of an “Inferred Mineral resource” (as that term ids defined in the Code)
at the Blackwood Gold Project having a contained gold mass of at least 300,000 ounces at a cut-
off grade of 2g/t.
(each a Performance Milestone).
Upon achieving any of the above three milestones, the performance rights will be eligible to be
converted into shares upon exercise by the holder.
As at 30 June 2020, management believe that the remaining performance and service hurdles will be
met and accordingly have recognised a share-based payment expense over the respective vesting
periods.
Total expense arising from the above performance rights is $9,534.
The performance rights held be key management personnel as at the date of this report are:
Name of Director
Simon Youds
Jess Oram
Qiu Derong
Judy Li
Chenchong Zhou
Number
4,000,000
2,000,000
1,000,000
1,000,000
1,000,000
9,000,000
End of Audited Remuneration Report.
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6
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
PRINCIPAL ACTIVITIES
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The principal activities of the Group during the financial year was mineral exploration.
There were no significant changes in the nature of the Group’s principal activities during the financial
year.
OPERATING RESULTS
The loss of the Group after providing for income tax amounted to $1,634,616 (30 June 2019:
$3,197,797 loss).
REVIEW OF OPERATIONS
Cauldron is an Australian exploration company resulting from the merger of Scimitar Resources Limited
and Jackson Minerals Limited in 2009. Cauldron retains an experienced board of directors with proven
success in the resources sector.
Cauldron has project interests in Western Australia, Victoria and Catamarca (Argentine) prospective for
uranium, gold and copper as set out under the heading “Project Information” below.
The following significant transactions and events occurred during the financial year:
Blackwood Gold Project
On 28 November 2019, Cauldron publicly announced that it had entered into a heads of agreement to
acquire an initial 51% interest in the Blackwood Gold Project located in central Victoria, with a right to
earn up to 80% through achievement of project milestones.
The Blackwood Gold Project incorporates the largely forgotten historic Blackwood Goldfield, from which
220,000 ounces of gold was produced in the period between 1855 and 1890, largely from hard-rock
underground mining of gold-rich quartz reef structures.
In December 2019, Cauldron completed its due diligence and committed to proceeding with the Project.
In March 2020, a joint venture agreement was executed, and a joint venture company incorporated –
Blackwood Goldfield Joint Venture Pty Ltd, ACN 640 126 638.
Bullarto South Gold Project
On 8 November 2019, Cauldron publicly announced that it had entered into a heads of agreement to
acquire an initial 60% interest in the Bullarto South Gold Project located in central Victoria, with a right
to earn up to 80% through achievement of project milestones.
The Bullarto South Gold Project lies adjacent to the Blackwood Gold Project.
In December 2019, Cauldron completed its due diligence and committed to proceeding with the Project,
subject to the successful grant of Exploration Licence 6804.
As at the date of this report, the application in respect of Exploration Licence 6804 remains pending and
there exists growing uncertainty of it being granted.
December 2019 Placement
On 23 December 2019, Cauldron completed a private placement resulting in the issue of 13,666,795
shares at $0.015 (1.5 cents) per share each, raising a total of $205,002.
Participants in the Placement also received a free attaching option on a 1 for 2 basis which are
exercisable at $0.03 (3 cents) and which have an expiry of 31 December 2021, resulting in the issue of
6,833,395 unlisted options.
March 2020 Placement
On 24 March 2020, Cauldron completed a private placement resulting in the issue of 33,333,332 shares
at $0.015 (1.5 cents) per share each, raising a total of $500,000, resulting in the issue of 16,666,666
unlisted options.
Participants in the Placement also received a free attaching option on a 1 for 2 basis which are
exercisable at $0.03 (3 cents) and which have an expiry of 31 December 2021.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
PROJECT INFORMATION
YANREY PROJECT, WESTERN AUSTRALIA
The Yanrey Project comprises a collection of twelve granted exploration tenements over an area of
1,270 km2 in northwest Western Australia (refer Figure 1), one of which secures the Bennet Well
Uranium Deposit. The project is prospective of sandstone-style uranium mineralisation capable of
extraction by in-situ recovery mining techniques.
The Bennet Well Uranium Deposit is located within the Yanrey Project area and has been the subject of
significant amount of exploration over a number of years by Cauldron, refer below.
Figure 1: Map Location of Cauldron Projects
Cauldron has not undertaken field work at Yanrey Project since the announcement on 20 June 2017 of
a ban of new uranium mines in Western Australia by minister Bill Johnston. The policy heading for
uranium exploration in Western Australia remains uncertain, and Cauldron continues to regularly seek
advice from the Minister and the Department of Mines, Industry Regulation and Safety (DMIRS).
Bennet Well
The Bennet Well Uranium Deposit is secured under exploration licence (the same group of licences that
form the greater Yanrey Project). The mineralisation at Bennet Well is a shallow accumulation of
uranium hosted in unconsolidated sands (less than 100 m downhole depth) in Cretaceous sedimentary
units of the North Carnarvon Basin. The Bennet Well deposit is comprised of four spatially separate
deposits; namely Bennet Well East, Bennet Well Central, Bennet Well South and Bennet Well Channel.
No development work quantifying the ISR potential Bennet Well deposit has been completed during the
year because of the uncertainty surrounding the Labor Government’s policy on uranium exploration
following their election win in March 2017. The Government has yet to clarify their policy on uranium
exploration. Cauldron intends to submit a POW to DMIRS for a potential FLT, when the policy on uranium
exploration s clarified and if the standard regulatory system applies.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
Bennet Well Mineral Resource
A Mineral Resource (JORC 2012) for the mineralisation at Bennet Well was completed by Ravensgate
Mining Industry Consultants following new drilling completed during the reporting period ending 2016.
The information on this Mineral Resource was fully reported in ASX announcement dated 17 December
2015, including geological maps and cross sections, supporting and explanatory statements and
metadata as required under the reporting standards of JORC2012. No work on the Mineral Resource
has been completed since, and therefore remains unchanged for the current reporting period.
The mineralisation at Bennet Well is a shallow accumulation of uranium hosted in unconsolidated sands
close to surface (less than 100 m downhole depth) in Cretaceous sedimentary units of the Ashburton
Embayment. The Bennet Well deposit is comprised of four spatially separate deposits; namely Bennet
Well East, Bennet Well Central, Bennet Well South and Bennet Well Channel.
The Mineral Resource (JORC 2012) estimate is:
•
•
•
Inferred Resource: 16.9 Mt at 335 ppm eU3O8 for total contained uranium-oxide of 12.5 Mlb (5,670t)
at 150 ppm cut-off;
Indicated Resource: 21.9 Mt at 375 ppm eU3O8 for total contained uranium-oxide of 18.1 Mlb
(8,230t) at 150 ppm cut-off;
total combined Mineral Resource: 38.9 Mt at 360 ppm eU3O8, for total contained uranium-oxide of
30.9 Mlb (13,990t) at 150 ppm cut-off.
Table 1: Mineral Resource at various cut-off
Deposit
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Deposit
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Deposit
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Cutoff
(ppm U3O8)
Deposit Mass
(t)
Deposit
Grade (ppm
eU3O8)
Mass U3O8
(kg)
Mass U3O8
(lbs)
125
150
175
200
250
300
400
500
800
39,207,000
38,871,000
36,205,000
34,205,000
26,484,000
19,310,000
10,157,000
6,494,000
1,206,000
355
360
375
385
430
490
620
715
1175
13,920,000 30,700,000
13,990,000 30,900,000
13,580,000 29,900,000
13,170,000 29,000,000
11,390,000 25,100,000
9,460,000 20,900,000
6,300,000 13,900,000
4,640,000 10,200,000
3,100,000
1,420,000
Cutoff
(ppm U3O8)
Deposit Mass
(t)
Deposit
Grade (ppm
eU3O8)
Mass U3O8
(kg)
Mass U3O8
(lbs)
125
150
175
200
250
300
400
500
800
22,028,000
21,939,000
21,732,000
20,916,000
17,404,000
13,044,000
7,421,000
4,496,000
353,000
375
375
380
385
415
465
560
635
910
8,260,000 18,200,000
8,230,000 18,100,000
8,260,000 18,200,000
8,050,000 17,800,000
7,220,000 15,900,000
6,070,000 13,400,000
9,200,000
4,160,000
6,300,000
2,850,000
700,000
320,000
Cutoff
(ppm U3O8)
Deposit Mass
(t)
Deposit
Grade (ppm
eU3O8)
Mass U3O8
(kg)
Mass U3O8
(lbs)
125
150
175
200
250
300
400
500
800
17,179,000
16,932,000
14,474,000
13,288,000
9,080,000
6,266,000
2,736,000
1,998,000
853,000
335
335
365
380
455
535
780
900
1285
5,750,000 12,700,000
5,670,000 12,500,000
5,280,000 11,600,000
5,050,000 11,100,000
9,100,000
4,130,000
7,400,000
3,350,000
4,700,000
2,130,000
4,000,000
1,800,000
2,400,000
1,100,000
Note: table shows rounded numbers therefore units may not convert nor sum exactly
9
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
Tenement Administration: Yanrey
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Objection to Cauldron’s Applications for exploration licences 08/2666-2668
Cauldron lodged applications for Exploration Licences 08/2666-2668 (E08/2666-2668) on 5 December
2014. Forrest & Forrest Pty Ltd lodged objections against E08/2666-2668 on 6 January 2015. The
matters are proceeding through the Warden’s Court process.
The Company will inform shareholders of any material developments.
Red Sky Stations Pty Ltd Objection to Tenement Application for E08/2899
Cauldron lodged an application for Exploration Licence 08/2899, on 1 February 2017. Red Sky Stations
Pty Ltd lodged Objection #501163 on 15 February 2017 against the tenement application. The matter
is proceeding through the Warden’s Court process.
The Company will inform shareholders of any material developments.
Cauldron’s E08/2385, E08/2386 and E08/2387 Tenement Applications Granted
During the year, the Court of Appeal handed down its unanimous decision in favour of the Company to
dismiss Forrest’s appeal against the grant of E08/2385, 2386 and 2387. These tenements were granted
on 19 January 2018.
RIO COLORADO PROJECT, CATAMARCA (ARGENTINA)
In Argentina, Cauldron controls, through its wholly-owned subsidiary Cauldron Minerals Limited
(“Cauldron Minerals”), 445 km2 of exploration licences at its 100% owned project, Rio Colorado, in
Catamarca. The project is prospective for copper and silver.
No work was completed at the Rio Colorado project during the year.
The Rio Colorada Project is currently in suspension and no work is planned whilst the Company
canvasses opportunities for joint venture, farm-in or sale.
BLACKWOOD GOLFIELD PROJECT, VICTORIA
Cauldron has entered into heads of agreement over the over the Bullarto South and Blackwood gold
projects, lying adjacent to one another south-east of Daylesford, in the highly prospective Central
Victorian Goldfields that surround Ballarat (together referred to as Victorian Gold Projects).
The Bullarto South Gold Project, which comprises Exploration Licence 6804, and the Blackwood Gold
Project, which comprises Exploration Licence 5479, together cover an area of 160 km2 and secure the
most significant portion of the highly prospective Blackwood Goldfield.
From 1864 to 1960 the Blackwood Goldfield produced about 218,000 ounces of gold from orogenic gold
sources (199,000 ounces) and from placer sources (19,000 ounces).1 Gold was won down to a depth
of 100 m below surface, with very little mining activity below a depth of 150 m. The Sultan mine is the
deepest in the goldfield with production levels at 230 m below ground surface and its shaft reaching
274 m, and still in pay.
Most mining activity on reef structures in the goldfield halted at shallow depths. Cessation of mining in
many cases was not due to depletion of mineralisation but rather other factors such as inability to cope
with water influx in the underground workings or inability to raise the capital for development work.
On 12 December 2019, Cauldron announced that it had completed its legal and technical due diligence
in relation to both projects, and wished to proceed.
In March 2020, a joint venture agreement was executed with the vendor of the Blackwood Gold Project,
and a joint venture company incorporated – Blackwood Goldfield Joint Venture Pty Ltd, ACN 640 126
638.
Notice of General Meeting of Shareholders of Cauldron to approve Blackwood Gold Project acquisition
and issue of shares to vendor was lodged with ASX on 3 July 2020. On 11 August 2020, a General
Meeting of Shareholders of Cauldron approved the acquisition of the Blackwood Gold Project Acquisition
and issue of securities to the vendor.
On 16 September 2020, 17,000,000 shares and 16,000,000 options were issued to the vendor (and
nominees) of the Blackwood Gold Project in order for Cauldron to earn its initial 51% joint venture
interest.
1 Source: Report titled “The Gold Mines of Blackwood” prepared by Erik Norum, Consultant Geologist, August 2018
10
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
As at the date of this report, a joint venture agreement has not been executed with the vendor of the
Bullarto South Gold Project, due to the fact that the application in respect of Exploration Licence 6804
remains pending and there exists growing uncertainty of it being granted.
Competent Person Statement
The information in this report that relates to the Mineral Resource for the Bennet Well Uranium Prospect is
based on information compiled by Jess Oram who is the Executive Director, Chief Executive Officer and
Exploration Manager of Cauldron, and a member of the Australasian Institute of Geoscientists and a Member
of the Geological Society of Australia.
The information in this report that relates to sampling techniques and data, exploration results, geological
interpretation and Exploration Targets, Mineral Resources or Ore Reserves for the Yanrey Project, the Rio
Colorado Project and the Blackwood Gold Project is also based on information compiled by Jess Oram.
Mr Oram has sufficient experience of relevance to the styles of mineralisation and the types of deposits under
consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Mr Oram consents to the inclusion in this report of the matters based
on information in the form and context in which it appears.
Forward looking statements
Information in this report may contain forward-looking statements. Forward-looking statements include, but
are not limited to, statements concerning Cauldron Energy Limited’s business plans, intentions, opportunities,
expectations, capabilities and other statements that are not historical facts. Forward-looking statements
include those containing such words as could-plan-target-estimate-forecast-anticipate-indicate-expect-
intend-may-potential-should or similar expressions. Such forward-looking statements are not guarantees of
future performance and involve known and unknown risks, uncertainties, assumptions and other important
factors, many of which are beyond the control of the Company, and which could cause actual results to differ
from those expressed in this report. Because actual results might differ materially to the information in this
report, the Company does not make, and this announcement should not be relied upon as, any representation
or warranty as to the accuracy, or reasonableness, of the underlying assumptions and uncertainties.
BUSINESS STRATEGIES AND PROSPECTS FOR THE FORTHCOMING YEAR
The Company is involved in the mineral exploration industry.
The Blackwood Goldfield Project will be Cauldron’s primary focus with activity at Yanrey Project
dependent upon a change of attitude from the Western Australian state Labor government which is
presently opposed to uranium mining in the state of Western Australia.
In addition, Cauldron is seeking to acquire one or more additional high value advanced exploration
projects capable of rapid improvement in value.
COVID-19
On 31 January 2020, the World Health Organisation (WHO) announced a global health emergency
because of a new strain of coronavirus originating in Wuhan, China (COVID-19 outbreak) and the risks
to the international community as the virus spreads globally beyond its point of origin. Because of the
rapid increase in exposure globally, on 11 March 2020, the WHO classified the COVID-19 outbreak as a
pandemic.
The full impact of the COVID-19 outbreak continues to evolve at the date of this report. The Group is
therefore uncertain as to the full impact that the pandemic will have on its financial condition, liquidity,
and future results of operations during FY2021.
Management has actively managed the global situation and its impact on the Group's financial condition,
operations, and workforce. Due to the termination of flights, closures of borders and various measures
being imposed by governments in relation to the pandemic, the Group decided on 18 March 2020 that
it is prudent to suspend its Western Australian and interstate exploration activities.
In early March 2020, the decision was made to relocate to a smaller office to house executive director
Jess Oram with other directors, employees and consultants to work from home. This remains the
position as at the date of this report.
Although the Group cannot fully estimate the length or gravity of the COVID-19 effect, from its initial
assessment, the impact over the next 12 months does not appear to be significant, indicating the entity
will be able to continue as a going concern.
11
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
SIGNFICANT CHANGES IN STATE OF AFFAIRS
There have been no changes in the state of affairs of the Group other than those disclosed in the review
of operations.
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial years, except for the following.
General Meeting of Shareholders
On 11 August 2020, a General Meeting of Shareholders of Cauldron approved all resolutions, including
the adoption of a Performance Rights Plan, the issue of 9,000,000 (cumulative) performance rights to
directors, the adoption of an employee share option plan, the acquisition of the Blackwood Gold Project
and issue of securities to the vendor of the Blackwood Gold Project.
Issue of Securities to Acquire 51% Joint Venture Interest in Blackwood Gold Project
On 16 September 2020, having received shareholder approval and satisfied the conditions precedent in
relation to the acquisition of a 51% joint venture interest in the Blackwood Gold Project, the Company
issued the securities to the vendor (and nominees) comprising 17,000,000 fully paid ordinary shares,
10,000,000 unlisted options having an exercise price of $0.03 and an expiry date of 16 September 2022
and 6,000,000 unlisted options having an exercise price of $0.05 and an expiry date of 16 September
2023.
Issue of Performance Rights to Directors
On 16 September 2020, having received shareholder approval, the Company issued 9,000,000
Performance Rights to directors under the Company’s Performance Rights Plan. Each Performance Right
converts into a fully paid ordinary shares in the event of achievement of performance conditions specified
in the terms and conditions and subject to the Performance Rights Plan.
Impact of Coronavirus (COVID-19)
The impact of Coronavirus (COVID-19) pandemic is ongoing and while it has not had a material impact
on the business up to 30 June 2020, it is not practicable to estimate the potential impact, positive or
negative, after the reporting date. The situation is rapidly developing and is dependent on measures
imposed by the Australian Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures
that it complies with all regulations when carrying out any exploration work.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared
by way of a dividend to the date of this report.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Grant date
Expiry date
Exercise price
Number
31 December 2021
23 December 2019
24 March 2020
31 March 2022
16 September 2020 16 September 2022
16 September 2020 16 September 2023
(0.03)
(0.03)
(0.03)
(0.05)
6,833,398
16,666,666
10,000,000
6,000,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in
any share issue of the Company or of any other body corporate.
During the financial year and up to and including the date of this report, nil ordinary shares were issued
on the exercise of options.
CORPORATE GOVERNANCE
Throughout FY20, Cauldron’s corporate governance arrangements were consistent with the Corporate
Governance Principles and Recommendations published by the ASX Corporate Governance Council (ASX
Principles).
Cauldron’s 2020 Corporate Governance Statement is available at http://cauldronenergy.com.au/ our-
company/corporate-governance/. The Corporate Governance Statement outlines details in relation to
Cauldron’s values, its Board, Board Committees, risk management framework and financial reporting,
diversity and inclusion, key corporate governance policies and shareholder engagement. Cauldron’s
website also contains copies of Cauldron’s Board and Committee Charters and key policies and
documents referred to in the Corporate Governance Statement.
MEETINGS OF DIRECTORS
Due to the size of the Company, the Board of Directors performs the role of the Audit Committee and
Remuneration Committee.
The number of meetings held during the year and the number of meetings attended by each Director
whilst in office are:
Director
Simon Youds
Jess Oram
Qiu Derong
Judy Li
Chenchong Zhou
Directors’ meetings
Held while
in office
Attended
6
6
6
6
6
6
6
6
6
6
The Company does not have a formally constituted audit committee or remuneration committee as the
board considers that the Company’s size and type of operation do not warrant such committees.
INDEMNIFICATION AND INSURANCE OF OFFICERS
During the year the Company paid premiums in respect of a contract insuring all the directors and
officers of the Company against liabilities incurred by the directors and officers that may arise from their
position as directors or officers of the Company.
In accordance with normal commercial practice, the disclosure of the total amount of premiums under
and the nature of the liabilities covered by the insurance contract is prohibited by a confidentiality clause
in the contract.
Except for the above, the Company has not indemnified or made an agreement to indemnify any person
who is or has been an officer or auditor of the Company against liabilities incurred as an officer or auditor
of the Company.
13
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2020 has been received and is
included on page 18 of the annual report.
AUDIT AND NON-AUDIT SERVICES
During the year the following fees were paid or payable for audit and non-audit services provided by
the auditor of the parent entity, its related practices and non-related audit firms:
Audit services:
BDO Audit (WA) Pty Ltd
Abelovich, Polano & Asocados S.R.L
Total remuneration for audit services
2020
$
2019
$
32,924
-
32,924
43,214
9,547
52,761
Non-audit services:
BDO Corporate Finance (WA) Pty Ltd performance rights review for
the purpose of the Notice of Meeting
Total remuneration for non-audit services
3,000
3,000
-
-
Total remuneration for audit and non-audit services
35,924
52,761
This report of the Directors, incorporation the Remuneration Report is signed in accordance with a
resolution of the Board of Directors.
Mr Simon Youds
Non-Executive Director
30 September 2020
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Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF CAULDRON ENERGY
LIMITED
As lead auditor of Cauldron Energy Limited for the year ended 30 June 2020, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Cauldron Energy Limited and the entities it controlled during the
period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth, 30 September 2020
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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
15
CAULDRON ENERGY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Continuing Operations
Revenue
Other Income
Administration expenses
Employee benefits expenses
Directors fees
Compliance and regulatory expenses
Consultancy expenses
Legal fees
Occupancy expenses
Travel expenses
Exploration expenditure
Notes
2020
$
2019
$
3 (a)
3 (b)
1,419
11,231
111,424
-
(35,628)
(49,386)
(374,335)
(273,993)
(147,000)
(203,500)
(84,187)
(123,010)
(253,925)
(278,038)
(23,519)
(171,975)
(13,908)
(66,028)
(17,037)
(10,268)
(93,386)
(176,924)
Net fair value gain/(loss) on financial assets
10
(449,691)
(1,432,647)
Depreciation and amortisation
Realised foreign exchange loss
Share based payments expense
Impairment losses
(Loss)/profit for the year before income tax
Income tax expense
(Loss)/profit for the year from continuing
operations attributable to members of the
Company
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or
loss:
Exchange difference arising on translation of foreign
operations
Total comprehensive (loss)/profit for the year
attributable to members of the Company
26
4
7
(4,071)
-
(9,534)
(2,281)
(1,683)
-
(241,238)
(419,296)
(1,634,616)
(3,197,797)
-
-
(1,634,616)
(3,197,797)
2,023
(30,888)
(1,632,593)
(3,228,685)
(Loss)/profit per share
Basic (loss)/profit per share (cents per share)
Diluted (loss)/profit per share (cents per share)
20(b)
20(b)
(0.47)
(0.47)
(0.97)
(0.97)
The above statement of comprehensive income is to be read in conjunction with the
accompanying notes.
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CAULDRON ENERGY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Total current assets
Non-current assets
Exploration and evaluation
Plant and equipment
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Employee entitlements
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Notes
2020
$
2019
$
8
9
10
12
13
14
15
16
17
19
396,311
526,681
26,562
29,105
600,146
1,282,895
1,023,019
1,838,681
-
4,947
4,947
-
9,018
9,018
1,027,966
1,847,699
700,512
625,913
92,755
69,029
793,267
694,942
793,267
694,942
234,699
1,152,757
56,380,921
55,675,919
4,203,556
4,191,999
(60,349,778)
(58,715,161)
234,699
1,152,757
The above statement of financial position is to be read in conjunction with the
accompanying notes.
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CAULDRON ENERGY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF CASH FLOWS
Notes
2020
$
2019
$
Cash flows from operating activities
Payments to suppliers and employees
(791,771)
(878,786)
Interest received
Interest paid
1,419
11,231
-
(34)
Net cash flows used in operating activities
24 (a)
(790,352)
(867,589)
Cash flows from investing activities
Purchase of plant and equipment
13
-
(7,908)
Payments for exploration and evaluation
(309,916)
(548,258)
Funding provided to Caudillo Resources SA
Proceeds from sales of equity investments
(19,583)
285,072
-
-
Net cash flows used in investing activities
(44,427)
(556,166)
Cash flows from financing activities
Proceeds from issue of shares
Net cash flows from investing activities
705,002
705,002
-
-
Net decrease in cash and cash equivalents
(129,777)
(1,423,755)
Effects of exchange rate changes on cash
Cash and cash equivalents at beginning of year
(593)
-
526,681
1,950,436
Cash and cash equivalents at end of year
8
396,311
526,681
The above statement of cash flows is to be read in conjunction with the
accompanying notes.
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CAULDRON ENERGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued
Capital
Accumulated
Losses
$
$
Share
Based
Payment
Reserve
$
Foreign
Currency
Translation
Reserve
$
Total Equity
$
Balance at 1 July 2019
55,675,919
(58,715,161)
5,808,480
(1,616,481)
1,152,757
Loss attributable to
members of the parent
entity
-
(1,634,616)
9,534
-
(1,625,082)
Other comprehensive loss
-
-
-
2,023
2,023
Total comprehensive
loss for the year
Transactions
with
owners in their capacity
as owners
Shares issued during the
period, net of costs
Balance at 30 June
2020
-
(1,634,616)
9,534
2,023
(1,623,059)
705,002
-
-
-
705,002
56,380,921
(60,349,778)
5,818,014
(1,614,458)
234,699
Balance at 1 July 2018
55,675,919
(55,517,364)
5,808,480
(1,585,593)
4,381,442
Profit attributable to
members of the parent
entity
-
(3,197,797)
Other comprehensive loss
-
-
-
(3,197,797)
-
-
-
-
(3,197,797)
(30,888)
(30,888)
(30,888)
(3,197,797)
Total comprehensive
profit for the year
Transactions
with
owners in their capacity
as owners
Shares issued during the
period, net of costs
-
-
-
-
-
Balance at 30 June 2019
55,675,919
(58,715,161)
5,808,480
(1,616,481)
1,152,757
The above statement of changes in equity is to be read in conjunction with the
accompanying notes.
19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ......................................... 21
SEGMENT INFORMATION ............................................................................... 29
REVENUE AND OTHER INCOME ....................................................................... 31
IMPAIRMENT LOSSES .................................................................................... 31
REMUNERATION OF AUDITORS ...................................................................... 31
KEY MANAGEMENT PERSONNEL ...................................................................... 31
INCOME TAX ................................................................................................ 32
CASH AND CASH EQUIVALENTS ..................................................................... 33
TRADE AND OTHER RECEIVABLES .................................................................. 33
FINANCIAL ASSETS ....................................................................................... 34
LOANS RECEIVABLE ...................................................................................... 34
EXPLORATION AND EVALUATION EXPENDITURE ............................................... 35
PLANT AND EQUIPMENT ................................................................................ 35
TRADE AND OTHER PAYABLES ........................................................................ 35
PROVISIONS ................................................................................................ 35
ISSUED CAPITAL .......................................................................................... 36
RESERVES ................................................................................................... 36
OPTIONS OVER UNISSUED SHARES ................................................................ 37
ACCUMULATED LOSSES ................................................................................. 37
EARNINGS/(LOSS) PER SHARE ....................................................................... 37
CONTROLLED ENTITIES ................................................................................. 38
RELATED PARTY INFORMATION ...................................................................... 38
COMMITMENTS............................................................................................. 39
CASH FLOW INFORMATION ............................................................................ 39
FINANCIAL RISK MANAGEMENT ...................................................................... 40
SHARE BASED PAYMENTS .............................................................................. 43
CONTIGENT ASSETS AND LIABILITIES ............................................................ 44
EVENTS SUBSEQUENT TO REPORTING DATE .................................................... 44
PARENT ENTITY DISCLOSURES ...................................................................... 45
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a.
Basis of Preparation
The financial report covers Cauldron Energy Limited (“Cauldron”) and its controlled entities (“the
Group”) for the year ended 30 June 2020 and was authorised for issue in accordance with a resolution
of the directors on 30 September 2020.
Cauldron is a public listed company, incorporated and domiciled in Australia.
Cauldron is a for-profit entity for the purposes of preparing these financial statements.
The financial report is a general-purpose financial report that has been prepared in accordance with
the requirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. The financial report has
been prepared on an accruals basis and is based on historical costs, modified, where applicable, by
the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
The financial report is presented in Australian dollars.
b.
Compliance with IFRS
The financial report complies with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board.
c.
Adoption of New and Revised Accounting Standards
New or amended Accounting Standards and Interpretations adopted
The Group has considered all of the new or amended Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting
period.
The Group has had to change its accounting policy with respect to leases as a result of adopting AASB
16: Leases.
The impact of the adoption of AASB 16: Leases is disclosed at (o) below.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the Group for the annual reporting period
ended 30 June 2020.
The Company is in the process of determining the impact of the above on its financial statements. The
Company has not elected to early adopt any new Standards or Interpretations.
d.
(i)
Principles of Consolidation
Subsidiaries
Subsidiaries are all entities over which the group has control. The group controls an entity when the
group is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are
fully consolidated from the date on which control is transferred to the group. They are deconsolidated
from the date that control ceases. A list of controlled entities is contained in Note 21 to the financial
statements.
All inter-group balances and transactions between entities in the Group, including any unrealised
profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with those adopted by the Parent Entity.
(ii)
Joint arrangements
Under AASB 11, Joint Arrangements investments in joint arrangements are classified as either joint
operations or joint ventures. The classification depends on the contractual rights and obligations of
each investor, rather than the legal structure of the joint arrangement.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Joint operations
Cauldron Energy Limited recognises its direct right to the assets, liabilities, revenues and expenses of
joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses.
These have been incorporated in the financial statements under the appropriate headings.
Joint ventures
Interests in joint ventures are accounted for using the equity method, after initially being recognised
at cost in the consolidated statement of financial position.
e.
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s companies is measured using the currency of the
primary economic environment in which that company operates. The consolidated financial statements
are presented in Australian dollars which is the parent entity’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates
prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting date. Non-monetary items
measured at historical cost continue to be carried at the exchange rate at the date of the transaction.
Non-monetary items measured at fair value are reported at the exchange rate at the date when fair
values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of
profit or loss and other comprehensive income, except where deferred in equity as a qualifying cash
flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity
to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference
is recognised in the statement of profit or loss and other comprehensive income.
Group companies
The financial results and position of foreign operations whose functional currency is different from the
Group’s presentation currency are translated as follows:
•
•
•
assets and liabilities are translated at year-end exchange rates prevailing at the end of the
reporting period;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group’s
foreign currency translation reserve in the statement of financial position. These differences are
recognised in the statement of profit or loss and other comprehensive income in the period in which
the operation is disposed.
f.
Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST),
except:
(i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised
as part of the cost of acquisition of an asset or as part of an item of expense; or
(ii)
for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation
authority is classified as operating cash flows.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
g.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the
reporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to
be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability
balances during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of
the profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax
assets also result where amounts have been fully expensed but future tax deductions are available.
No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding
a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on tax rates enacted or substantively
enacted at the end of the reporting period. Their measurement also reflects the manner in which
management expects to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the
deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal
of the temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of
set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur in
future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
Tax consolidation
Cauldron Energy Limited and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under tax consolidation legislation. Each entity in the Group recognises its own
current and deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone
taxpayer’ approach to allocation. Current tax liabilities (assets) and deferred tax assets arising from
unused tax losses and tax credits in the subsidiaries are immediately transferred to the head entity.
The Group notified the Australian Taxation Office that it had formed an income tax consolidated group
to apply from 1 July 2009.
h.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market
instruments. Cash equivalents are short-term, highly liquid investments that are readily convertible
to known amounts of cash, which are subject to an insignificant risk of changes in value and have an
original maturity of three months or less.
i.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are
included as part of the initial measurement, except for financial assets at fair value through profit or
loss. Such assets are subsequently measured at either amortised cost or fair value depending on their
classification. Classification is determined based on both the business model within which such assets
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
are held and the contractual cash flow characteristics of the financial asset unless, an accounting
mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the Group has transferred substantially all the risks and rewards of ownership. When
there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income
are classified as financial assets at fair value through profit or loss. Typically, such financial assets will
be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with
an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where
permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which
the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the Group's assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a
12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has
increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The
amount of expected credit loss recognised is measured on the basis of the probability weighted present
value of anticipated cash shortfalls over the life of the instrument discounted at the original effective
interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance
is recognised within other comprehensive income. In all other cases, the loss allowance is recognised
in profit or loss.
j.
Property, Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes
expenditure that is directly attributable to the acquisition of the item. In the event that settlement of
all or part of the purchase consideration is deferred, cost is determined by discounting the amounts
payable in the future to their present value as at the date of acquisition.
Depreciation is provided on plant and equipment. Depreciation is calculated on a diminishing value
basis so as to write off the net cost or other revalued amount of each asset over its expected useful
life to its estimated residual value. The estimated useful lives, residual values and depreciation method
are reviewed at the end of each annual reporting period.
The depreciation rates used for each class of depreciable assets for the 30 June 2020 year are:
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Class of Fixed Asset
Plant and equipment
Office furniture and equipment
Motor vehicle 33.3%
Depreciation Rate
33.3%
33.3%
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are included in the statement of profit or loss and other comprehensive income. When
revalued assets are sold, amounts included in the revaluation surplus relating to that asset are
transferred to retained earnings.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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k.
Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are expected
to be recouped through the successful development of the area or where activities in the area have
not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in
which the decision to abandon the area is made. When production commences, the accumulated costs
for the relevant area of interest are amortised over the life of the area according to the rate of depletion
of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest.
l.
Impairment of Non-Financial Assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The
value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-
tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that
do not have independent cash flows are grouped together to form a cash-generating unit.
m. R&D Tax Incentive
Refundable tax incentives are accounted for as government grants under AASB 120 Accounting for
Government Grants and Disclosure of Government Assistance because the directors consider this
policy to provide more relevant information to meet the economic decision-making needs of users,
and to make the financial statements more reliable. The Group has determined that these incentives
are akin to government grants because they are not conditional upon earning taxable income.
n.
Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for
goods and services received by the Group during the reporting period which remains unpaid. The
balance is recognised as a current liability with the amount being normally paid within 30 days of
recognition of the liability.
o.
Leases
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use-asset and a corresponding liability are recognised by the Group where the
Group is a lessee. However, all contracts that are classified as short-term leases (i.e. with a remaining
lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense
on a straight line over the term of the lease.
Initially the lease is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If
this rate cannot be readily determined, the Group uses the incremental borrowing rate.
The right-of-use-assets comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any indirect costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment
losses.
Right-of-use-assets are depreciated over the lease term or useful life of the underlying asset,
whichever is the shortest.
The Group has adopted AASB 16: Leases retrospectively with the adoption having no material effect
at 30 June 2020 on the basis that the net present value of remaining lease payments is minor and the
resultant right-for-use-asset determined to be of low value.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
p.
Revenue Recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to
be entitled in exchange for transferring goods or services to a customer. For each contract with a
customer, the Group: identifies the contract with a customer; identifies the performance obligations
in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner
that depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the
customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer
and any other contingent events. Such estimates are determined using either the 'expected value' or
'most likely amount' method. The measurement of variable consideration is subject to a constraining
principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement
constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are recognised as a refund
liability.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate. This includes Cash
Boost income received due to COVID-19 during the year.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
q.
Provisions and Employee Benefits
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measures at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the reporting date. The discount rate used to determine
the present value reflects current assessments of the time value of money and the risks specific to the
liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
Provision for restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a
result of exploration activities undertaken, it is probable that an outflow of economic benefits will be
required to settle the obligation, and the amount of the provision can be measured reliably. The
estimated future obligation includes the costs of removing facilities, abandoning sites and restoring
the affected areas.
Employee leave benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be
settled wholly within 12 months of the reporting date are recognised in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities
are settled.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
r.
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
s.
Share based payments
Equity-settled share based payments are measured at fair value at the date of grant. Fair value is
measured by use of the Black-Scholes options pricing model in respect of options issued. The expected
life used in the model has been adjusted, based on management’s best estimate, for the effects of
non-transferability, exercise restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity-settled share-based payments is expensed
on a straight-line basis over the vesting period, based on the Group’s estimate of shares that will
eventually vest.
For cash-settled share-based payments, a liability equal to the portion of the goods and services
received is recognised at the current fair value determined at each reporting date.
Performance rights issued under the Performance Rights Plan are measured by reference to the fair
value of the equity instruments at the date on which they were granted using a Black-Scholes option
pricing model or binomial option pricing model, dependant on the associated performance conditions.
t.
Critical accounting judgements, estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to carrying amounts of assets and
liabilities within the next financial year are discussed below.
Exploration and evaluation costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward in respect of an area that has not at balance date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in or relating to, the area of interest are
continuing.
Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation, and the directors understanding thereof. At the current stage of
the Group’s development and its current environmental impact the directors believe such treatment is
reasonable and appropriate.
Income taxes
The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations.
Significant judgement is required in determining the worldwide provision for income taxes. There are
many transactions and calculations undertaken during the ordinary course of business for which the
ultimate tax determination is uncertain. The Group estimates its tax liabilities based on the Group’s
understanding of the tax laws in the relevant jurisdictions. Where the final tax outcome of these
matters is different from the amounts that were initially recorded, such difference will impact the
current and deferred income tax assets and liabilities in the period in which such determination is
made.
In addition, the Group has recognised deferred tax assets relating to carried forward tax losses to the
extent there are sufficient taxable temporary differences (deferred tax liabilities) relating to the same
taxation authority and the same subsidiary against which the unused tax losses can be utilised.
However, utilisation of the tax losses also depends on the ability of the entity to satisfy certain tests
at the time the losses are recouped.
Performance Rights
Performance rights issued to Directors under the Performance Rights Plan are measured by reference
to the fair value of the equity instruments at the date on which they were granted using share price
of the Company on grant date.
Share-based payments recognised may require an estimation of reasonable expectations about
achievement of future vesting conditions. Vesting conditions must be satisfied for the director to
become entitled to receive ordinary shares.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Vesting conditions include services conditions, which require the director to complete a specified period
of service, and performance conditions, which require the specified performance targets to be met.
The Company recognises a share-based payment expense amount for the services received during the
vesting period based o the best available estimate of the number of equity instruments expected to
vest and shall revise that estimate, if necessary, if subsequent information indicates that the number
of equity instruments expected to vest differs from previous estimates. On vesting date, the Company
shall revise the estimate to equal the number of equity instruments that ultimately vested.
The achievement of future vesting conditions is reassessed at each reporting period.
u.
Comparative Figures
Comparative figures have been adjusted to conform to changes in presentation for the current financial
year.
v.
Operating Segments
An operating segment is a component of an entity that engages in business activities from which it
may earn revenues and incur expenses (including revenues and expenses relating to transactions with
other components of the same entity), whose operating results are regularly reviewed by the entity’s
chief operating decision maker to make decisions about resources to be allocated to the segment and
assess their performance and for which discrete financial information is available. This includes start-
up operations which are yet to earn revenues.
Operating segments have been identified based on the information provided to the chief operating
decision makers – being the board of directors.
Information about other business activities and operating segments that do not meet the
quantitative criteria set out in AASB 8 “Operating Segments” are combined and disclosed in a
separate category called “other.”
w. Going Concern
The financial report has been prepared on the going concern basis, which contemplates the continuity
of normal business activity and the realisation of assets and settlement of liabilities in the normal
course of business.
As at 30 June 2020, the Group had cash and cash equivalents of $396,311 and had net working capital
of $229,752. The Group incurred a loss for the year ended 30 June 2020 of $1,634,616 (30 June
2019: $3,197,797 loss) and net cash outflows used in operating activities and investing activities
totalling $834,779 (30 June 2019: $1,423,755).
The ability of this Group to continue as a going concern is dependent on the Group securing additional
debt and/or equity funding to meet its working capital requirements in the next 12 months. These
conditions indicate the existence of a material uncertainty that may cast a significant doubt about the
Group’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets
and discharge its liabilities in the normal course of business.
At the date of this report, the directors are satisfied there are reasonable grounds to believe that the
Group will be able to continue its planned operations and the Group will be able to meet its obligations
as and when they fall due, for the following reasons:
•
•
•
•
the Company has the ability to raise funds through equity issues;
the Company has significantly reduced its corporate costs in recent times and they are now at
modest level for a public company;
the Group holds a portfolio of investments valued at $600,146 at 30 June 2020, which may be
sold to fund ongoing cash requirements of the Company; and
the Directors are of the opinion that the use of the going concern basis of accounting is
appropriate as they are confident in the ability of the Group to be successful in securing additional
funds through debt or equity issues as and when the need to raise working capital arises.
Should the Group not be able to continue as a going concern, it may be required to realise its assets
and discharge its liabilities other than in the ordinary course of business, and at amounts that differ
from those stated in the financial statements. The financial report does not include any adjustments
relating to the recoverability and classification of recorded asset amounts or liabilities that might be
necessary should the Group not continue as a going concern and meet its debts as and when they
become due and payable.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.
SEGMENT INFORMATION
The Group has identified its operating segments based on the internal reports that are reviewed and
used by the board of directors (chief operating decision makers) in assessing performance and
determining the allocation of resources. During the year, the Group operated in one business segment
(for primary reporting) being mineral exploration and principally in two geographical segments (for
secondary reporting) being Australia and Argentina.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the board of directors as the chief decision maker
with respect to operating segments are determined in accordance with accounting policies that are
consistent to those adopted in the annual financial statements of the Group.
Inter-segment transactions
Inter-segment loans payable and receivable are initially recognised as the consideration received net
of transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these
are not adjusted to fair value based on market interest rates. This policy represents a departure from
that applied to the statutory financial statements.
Segment assets
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax
assets and intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability
and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to
the Group as a whole and are not allocated to specific segments. Segment liabilities include trade and
other payables and certain direct borrowings.
Other items
The following items of revenue, expense, assets and liabilities are not allocated to the Mineral
Exploration segment as they are not considered part of the core operations of that segment:
▪
▪
▪
▪
▪
▪
administration and other operating expenses not directly related to uranium exploration
interest income
interest expense
subscription funds
loans to other entities
financial assets at fair value through profit or loss
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Segment Information
Mineral Exploration
Other
Total
2020
2019
2020
2019
2020
2019
$
$
$
$
$
$
Revenue
Interest received
Other
Gain on disposal of financial assets
Total segment revenue and
other income
Segment net operating
profit/(loss) after tax
Segment net operating profit/(loss)
after tax includes the following
significant items:
Net fair value gain/(loss) on
financial assets
Impairment of loans and
receivables
-
-
-
-
-
-
-
1,419
11,231
1,419
11,231
59,410
52,014
-
-
59,410
52,014
-
-
-
112,843
11,231
112,843
11,231
-
-
(449,691) (1,434,330)
(449,691) (1,434,330)
-
(47,963)
(24,708)
-
(24,708)
(47,963)
Impairment of exploration assets
(216,530)
(371,333)
-
-
(216,530)
(371,333)
Depreciation
Employee benefits expense
Directors fees
Consultancy expenses
Legal fees
-
-
-
-
-
(2,281)
(4,071)
-
(4,071)
(2,281)
-
(374,335)
(273,993)
(374,335)
(273,993)
-
(147,000)
(203,500)
(147,000)
(203,500)
-
(253,925)
(278,038)
(253,925)
(278,038)
-
(23,519)
(171,975)
(23,519)
(171,975)
Tenement expenditure
(93,386)
(176,923)
-
-
-
-
(9,534)
-
(37,917)
(237,461)
(37,917)
(237,461)
-
-
(93,386)
(176,923)
(9,534)
-
Share based payments expense
Other expenses
Total segment net operating
profit /(loss) after tax
Segment assets
Segment assets include:
Financial assets
Other assets
Segment liabilities
Segment information by
geographical region
The analysis of the location of total
assets is as follows:
Australia
Argentina
(309,916)
(598,500) (1,324,700) (2,599,297) (1,634,616) (3,197,797)
-
-
-
-
-
600,146 1,282,895
600,146 1,282,895
9,018
427,820
555,786
427,820
564,804
9,018 1,027,966 1,838,681 1,027,966 1,847,699
-
793,267
694,942
793,267
694,942
787,461
1,836,287
5,806
11,412
793,267 1,847,699
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
REVENUE AND OTHER INCOME
(a) Revenue
Interest received
Total revenue
(b) Other income
Realised fair value gain on disposal of financial assets
Other
Total other income
4.
IMPAIRMENT LOSSES
2020
$
2019
$
1,419
1,419
11,231
11,231
52,014
59,410
111,424
-
-
-
Impairment of exploration and evaluation expenditure
Expected credit loss of loans and other receivables
Total impairment losses
216,530
24,708
371,333
47,963
241,238
419,296
5.
REMUNERATION OF AUDITORS
Paid or payable to BDO (WA) Pty Ltd for:
Audit and review of financial statements
32,924
43,214
Paid or payable to Abelovich, Polano & Asocados S.R.L for:
Audit of Argentina subsidiary
-
9,547
Renumeration of BDO (WA) Pty Ltd for:
Non-audit services:
Performance Rights valuation for purpose of ‘Notice of
General Meeting’ by BDO Corporate Finance (WA) Pty Ltd
Total auditor's remuneration
3,000
-
35,924
52,761
6.
KEY MANAGEMENT PERSONNEL
Names and positions held of key management personnel in office at any time during the 2019/2020
financial year were:
Name
Simon Youds
Jess Oram
Qiu Derong
Judy Li
Chenchong Zhou
Position
Non-Executive Director and Chairman
Executive Director and Chief Executive Officer
Non-Executive Director
Non-Executive Director
Non-Executive Director
Refer to the Remuneration Report contained in the Directors’ Report for details of the shares, rights
and options held and remuneration paid or payable to each member of the Group’s key management
personnel for the year ended 30 June 2020.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
7.
INCOME TAX
(a) The components of tax expense comprise:
Current tax (expense)/benefit
Deferred tax (expense)/benefit
Total
2020
$
2019
$
-
-
-
-
-
-
(b) The prima
facia
(benefit)/expense on
(loss)/profit from ordinary activities before income
tax is reconciled to the income tax as follows:
tax
Accounting (loss)/profit before tax
(1,634,616)
(3,197,797)
Total accounting (loss)/profit before tax
(1,634,616)
(3,197,797)
Prima facie income tax (expense)/benefit @ 30.0%
(490,385)
(959,339)
Tax effect of:
Non-deductible expenses
Deductible capitalised exploration costs
Realised capital (gain)/loss on investments
92,681
105,681
(64,959)
(111,400)
(15,604)
-
Unrealised capital (gain)/loss on investments
134,907
429,794
Non-assessable non-exempt foreign related expenditure
24,156
49,729
Section 40-880 deduction
Other non-assessable income
Losses and other deferred tax balances not recognised during
the period
Aggregate income tax expense
(c) Recognised deferred tax balances
Deferred tax balances have been recognised in respect of
the following:
Deferred tax assets
Employee entitlements
Other receivables
Other payables
Capital raising costs
Tax losses
Deferred tax assets not recognised
Total deferred tax assets
Deferred tax liabilities
Exploration
Total deferred tax liabilities
Net recognised deferred tax assets/(liabilities)
(1,800)
(23,220)
(17,793)
-
338,796
508,755
-
-
27,736
26,096
92,734
1,800
20,709
12,802
75,792
3,600
4,564,179
4,437,286
(4,712,544)
(4,550,189)
-
-
-
-
-
-
-
-
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
8.
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Cash and cash equivalents
Reconciliation to cash flow statement
For the purposes of the cash flow statement, cash and cash
equivalents comprise the following at 30 June:
Cash at bank and in hand
Cash held in trust
2020
$
2019
$
396,311
526,681
396,311
526,681
396,311
526,681
-
-
Cash for reconciliation of cash flow statement
396,311
526,681
9.
TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Prepayments
Allowance for expected credit losses (2019: Provision for
impairment of receivables) (a)
108,549
105,271
5,000
6,553
(86,987)
(82,719)
Total current trade and other receivables
26,562
29,105
a) Provision for non-recovery of trade receivables
Balance at 1 July
Impairment of receivable
Recovery of previously impaired receivable
Balance at 30 June
(82,719)
(40,045)
(4,268)
(42,674)
-
-
(86,987)
(82,719)
Allowance for expected credit losses
The Group has recognised a loss of $4,268, in profit or loss in respect of the expected credit losses for
the year ended 30 June 2020 for its Trade and Other Receivables.
Credit risk
The Group has no significant concentration of credit risk with respect to any single counterparty or
group of counterparties.
The following table details the Group’s trade and other receivables exposure to credit risk with ageing
analysis. Amounts are considered ‘past due’ when the debt has not been settled, with the terms and
conditions agreed between the Group and the counter party to the transaction. Receivables that are
past due are assessed for impairment is ascertaining solvency of the debtors and are provided for
where there are specific circumstances indicating that the debt may not be fully recoverable by the
Group.
Trading terms
2020
Trade receivables
2019
Trade receivables
Gross amount Past due and
impaired
Within initial
trade terms
108,549
86,987
21,562
105,271
82,719
22,552
33
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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10. FINANCIAL ASSETS
Financial assets at fair value through profit or loss (listed
investments)
Financial assets at fair value through profit or loss (unlisted
investments)
Total financial assets
Movements:
Opening balance
2020
$
2019
$
594,886
1,277,635
5,260
5,260
600,146
1,282,895
1,282,895
2,715,310
Acquisition of equity securities (non-cash)
Disposal of equity securities
(285,072)
Realised fair value gain/(loss) through profit or loss (Note 3(b))
52,014
231
-
-
Fair value gain/(loss) through profit or loss
Closing balance
(449,691)
(1,432,646)
600,146
1,282,895
Financial assets comprise investments in the ordinary issued capital of various entities. There are no
fixed returns or fixed maturity dates attached to these investments. The fair value of listed
investments is calculated with reference to current market prices at balance date.
11. LOANS RECEIVABLE
Caudillo Resources SA (a)
Allowance for expected credit loss (a)
Total loan receivables
1,406,771
1,406,771
(1,406,771)
(1,406,771)
-
-
a)
The Group’s wholly owned subsidiary Jakaranda Minerals Limited (“Jakaranda”) previously
provided a draw-down facility (“First Loan”) up to $650,000 to Caudillo Resources SA
(“Caudillo”), which is included in this balance. The First Loan and interest (LIBOR + 2%) was
required to be repaid in cash by 21 February 2013, or Jakaranda may elect to convert the First
Loan into an 80% interest in the issued capital of Caudillo. At 30 June 2014, this draw-down
facility had been utilised. The Group intends to elect to convert the First Loan into an 80%
equity interest in Caudillo, and the execution of this is currently in the process of being
completed.
The Group agreed to provide further draw-down facilities from Jakaranda to Caudillo for
$650,000 and $150,000 respectively (“Second Loan” and “Third Loan”). The Second Loan and
Third Loan and interest (LIBOR + 2%) is repayable, at the election of Caudillo, by way of:
(i)
(ii)
cash; or
subject to Caudillo and Jakaranda obtaining all necessary shareholder and regulatory
approvals, the issue to Jakaranda of fully paid ordinary shares in the capital of Caudillo
based on a deemed issue price per Caudillo share of 100 (Argentinean pesos).
Until such time as the First Loan, Second Loan and Third Loan are repaid or converted to an
equity interest in Caudillo the Group has conservatively provided for the non-recovery of the
loans in full. As a result of this, an impairment expense of Nil (30 June 2019: $Nil) has been
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
34
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
12. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure
Exploration and evaluation expenditure - provision for
impairment
Net carrying amount exploration and evaluation
Reconciliation of carrying amounts
Balance at 1 July
Exploration expenditure incurred
Impairment of exploration expenditure
R&D tax incentive
Balance at 30 June
13. PLANT AND EQUIPMENT
At cost
Accumulated depreciation
2020
$
2019
$
9,805,298
9,588,768
(9,805,298)
(9,588,768)
-
-
-
-
216,530
371,333
(216,530)
(371,333)
-
-
-
-
40,926
42,608
(35,979)
(33,590)
Net carrying amount exploration and evaluation
4,947
9,018
Reconciliation of carrying amounts
Balance at 1 July
Additions
Depreciation expense
Foreign exchange movements
Balance at 30 June
14. TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
Total trade and other payables
9,018
-
3,391
7,908
(4,071)
(2,281)
-
-
4,947
9,018
101,400
68,443
599,112
557,470
700,512
625,913
Trade payables are non-interest bearing and are normally settled on 30 day terms.
15. PROVISIONS
Current
Employee benefits
Total provisions
92,755
92,755
69,029
69,029
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020
2019
No. Shares No. Shares
2020
$
2019
$
16. ISSUED CAPITAL
Share capital
Ordinary shares fully paid
376,289,835
329,289,708
56,380,921
55,675,919
Opening balance at 1 July
329,289,708 329,289,708 55,675,919 55,675,919
Ordinary shares issued
47,000,127
-
705,002
Share issue costs
-
-
-
-
-
Closing balance at 30 June
376,289,835 329,289,708 56,380,921 55,675,919
Terms and Conditions
Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to
one vote per share at shareholder meetings. In the event of winding up of the Group, ordinary
shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds of
liquidation.
Capital risk management
Capital managed by the Board includes shareholder equity, which was $56,380,921 at 30 June 2020
(2019: $55,675,919). The Group’s objectives when managing capital are to safeguard its ability to
continue as a going concern, so that it may continue to provide returns to shareholders and benefits to
other stakeholders. The Company’s capital includes ordinary share capital and financial liabilities,
supported by financial assets.
Due to the nature of the Group’s activities, being mineral exploration, it does not have ready access to
credit facilities, with the primary source of funding being equity raisings. Accordingly, the objective of
the Group’s capital risk management is to balance the current working capital position against the
requirements of the Group to meet exploration programmes and corporate overheads.
17. RESERVES
Reserves
Share based payment reserve (a)
Foreign currency translation reserve (b)
Total reserves
(a) Share based payment reserve
Reserve balance at beginning of year
Performance rights vested
Reserve balance at end of year
(b) Foreign currency translation reserve
2020
$
2019
$
5,818,015
5,808,481
(1,614,459)
(1,616,482)
4,203,556
4,191,999
5,808,481
5,808,481
9,534
-
5,818,015
5,808,481
Reserve balance at beginning of year
(1,616,482)
(1,585,594)
Foreign currency exchange differences arising on
translation of foreign operations
2,023
(30,888)
Reserve balance at end of year
(1,614,459) (1,616,482)
36
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Exchange differences relating to the translation from the functional currencies of the Group’s foreign
controlled entities into Australian dollars are recognised directly in the foreign currency translation
reserve.
18. OPTIONS OVER UNISSUED SHARES
Unissued ordinary shares of the Company under option at 30 June 2020 were:
Grant date
Expiry date
Exercise price
Number
23 December 2019
24 March 2020
31 December 2021
31 March 2022
(0.03)
(0.03)
6,833,398
16,666,666
No person entitled to exercise the options had or has any right by virtue of the option to participate
in any share issue of the Company or of any other body corporate.
During the financial year and up to and including the date of this report, nil ordinary shares were
issued on the exercise of options.
2020
$
2019
$
19. ACCUMULATED LOSSES
Accumulated Losses
(60,349,778)
(58,715,162)
Accumulated losses at 1 July
(58,715,161)
(55,517,364)
Net (loss)/profit attributable to members
(1,634,616)
(3,197,797)
Balance at 30 June
(60,349,778) (58,715,161)
20. EARNINGS/(LOSS) PER SHARE
(a)
(Loss)/Profit used in calculating (loss)/earnings per
share
Net loss from continuing operations attributable to ordinary
equity holders of the parent
(1,634,616)
(3,197,797)
Net loss attributable to ordinary equity holders of the parent for
basic earnings
(1,634,616) (3,197,797)
(b)
Weighted average number of shares outstanding
during the year used in the calculation of:
No.
No.
Basic earnings/(loss) per share
345,353,701
329,289,708
Diluted earnings/(loss) per share
Basic earnings/(loss) per share
Continuing operations
Diluted earnings/(loss) per share
Continuing operations
345,353,701
329,289,708
Cents per
share
Cents per
share
(0.47)
(0.97)
(0.47)
(0.97)
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
21. CONTROLLED ENTITIES
Details of Cauldron Energy Limited’s subsidiaries are:
Name
Country of
Incorporation
Date/Company
of
Incorporation
Shares
Ownership
Interest
Investment
Carrying
Amount
Ronin Energy Ltd
Australia
24 April 2006
Cauldron Minerals Ltd
Australia
24 April 2006
Jakaranda Minerals Ltd
Australia
24 April 2006
Raven Minerals Ltd
Australia
24 April 2006
Ord
Ord
Ord
Ord
Cauldron Energy (Bermuda)
Limited
Bermuda
2 February 2012
Ord
Cauldron Energy (SL) Limited Sierra Leone
12 March 2012
Ord
Blackwood Goldfield Joint
2020
%
100
2019
%
100
2020
$
5
2019
$
5
100
100
100
100
100
100
100
100
100
100
1
1
5
1
1
1
1
5
1
1
Venture Pty Ltd
Sierra Leone
3 April 2020
Ord
51
-
Total Investment
22. RELATED PARTY INFORMATION
2
16
-
14
Balances between the company and its subsidiaries which are related parties of the company, have
been eliminated on consolidation and are not disclosed in this note. Note 21 provides information
about the Group’s structure including the details of the subsidiaries and the percentage held in each
subsidiary by the holding company.
Loans with Related Parties
There were no loans made to Cauldron Energy Limited by directors and entities related to them during
the year ended 30 June 2020 and 30 June 2019.
The ultimate parent
The ultimate parent of the Group is Cauldron Energy Limited which is based in and listed in Australia.
Significant shareholders
Qiu Derong holds a significant interest of 12.64% in the issued capital of Cauldron Energy at 30 June
2020 (30 June 2019: 14.44%). Mr Qiu Derong is a director of Cauldron.
Compensation of Key Management Personnel of the Group
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration
paid or payable to each member of the Group’s key management personnel (“KMP”) for the year ended
30 June 2020.
The key management personnel compensation comprised of:
Short term employment benefits
Long term employment benefits
Post-employment benefits
Share-based payments
2020
$
2019
$
385,388
429,664
3,706
20,235
9,534
4,343
20,235
-
Total key management personnel remuneration
418,962
454,242
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
23. COMMITMENTS
Office Rental Commitments
The Company entered into a lease on 9 March 2020 for office premises located at Unit 47, 1008
Wellington Street, West Perth, for a term of 2 year period, subject to each party having the right to
terminate the lease at any time prior to the Expiry Date by the giving of 3 months’ notice.
Within one year
Between one and five years
Longer than five years
Total commitments
2020
$
30,000
20,795
-
2019
$
132,056
99,042
-
50,795
231,098
Exploration Expenditure Commitments
The minimum exploration expenditure commitments inclusive of rents and rates outstanding at 30
June 2020 in relation to the Company’s licenced tenements were $555,340 as follows:
Within one year
Between one and five years
Longer than five years
Total commitments
555,340
1,179,852
-
-
494,702
-
555,340
1,674,554
24. CASH FLOW INFORMATION
(a) Reconciliation of cash flows from continuing
operations with profit/(loss) from ordinary
activities after income tax
(Loss)/profit from continuing operations
(1,634,616)
(3,197,797)
Non-cash items:
Depreciation
Share-based payments
Net fair value loss/(gain) on financial assets
Fair value gain on disposal of shares (Note 3(b))
Impairment losses
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Increase in trade and other creditors
Increase/(decrease) in provisions
4,071
9,534
2,281
-
449,691
1,432,647
52,014
241,238
-
419,296
2,543
61,447
23,726
389,082
69,394
17,508
Net cash flows used in operating activities
(790,352)
(867,589)
(b) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand
and in banks and investments in money market instruments, net of outstanding bank overdrafts.
Cash and cash equivalents at the end of the financial year as shown in the cash flow statement
is reconciled to the related items in the statement of financial position as follows:
Cash at bank and in hand
396,311
526,681
Cash for reconciliation of cash flow statement
396,311
526,681
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
25. FINANCIAL RISK MANAGEMENT
Financial risk management
The Group’s financial instruments consist mainly of deposits with banks, trade and other receivable,
loan receivables, trade and other payables and shares in listed and unlisted companies.
The Group does not speculate in the trading of derivative instruments.
The totals for each category of financial instruments, measured in accordance with AASB 9 are:
Financial assets
Cash and cash equivalents (note 8)
Financial assets at fair value through profit or loss (listed
investments) (note 10)
Financial assets at fair value through profit or loss (unlisted
investments) (note 10)
Trade and other receivables (note 9)
Total Financial Assets
Financial liabilities
Trade and other payables (note 14)
Total financial liabilities
Financial risk management policies
2020
$
2019
$
396,311
526,681
594,886
1,277,635
5,260
5,260
26,562
29,105
1,023,019
1,838,681
700,512
625,913
700,512
625,913
The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk),
credit rate risk and liquidity risk.
The Group’s overall risk management program focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the financial performance of the Group. The Group
uses different methods to measure different types of risk to which it is exposed. These methods
include sensitivity analysis in the case of interest rate, foreign exchange and other price risks and
aging analysis for credit risk. Risk management is carried out by the Board and they provide written
principles for overall risk management.
Financial risk exposures and management
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market
risk consisting of interest rate risk, foreign currency risk and equity price risk.
(a)
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to
exchange rate fluctuations arise. Given the few transactions the Board does not consider there to be
a need for policies to hedge against foreign currency risk. The Group’s has no significant exposure to
foreign currency risk as at the reporting date.
(b)
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end
of the reporting period whereby a future change in interest rates will affect future cash flows or the
fair value of fixed rate financial instruments. Cash and cash equivalents on deposit at variable rates
expose the Group to cash flow interest rate risk. The Group is exposed to movements in market
interest rates on short term deposits. The policy is to monitor the interest rate yield curve out to 120
days to ensure a balance is maintained between the liquidity of cash assets and the interest rate
return.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The effect on profit/(loss) and equity as a result of changes in the interest rate:
Change in loss:
Increase in interest rate by 200 basis points
Decrease in interest rate by 200 basis points
2020
$
2019
$
7,926
10,534
(7,926)
(10,534)
The above interest rate sensitivity analysis has been performed on the assumption that all other
variables remain unchanged.
(c) Equity Securities Price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group
and classified on the statement of financial position as current financial assets at fair value through
profit or loss. The Group is not exposed to commodity price risk.
To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio
which is done in accordance with the limits set by the Group. The majority of the Group’s equity
investments are publicly traded on the ASX.
The table below summarises the impact of increases/decreases of the index on the Group’s post tax
profit/(loss) for the year and on equity. The analysis is based on the assumption that the equity
indexes had increased/decreased by 20% (2019 – 20%) with all other variables held constant and all
the Group’s equity instruments moved according to the historical correlation with the index.
Index
ASX listed
(d) Credit risk
Impact on Post-Tax Profit
or (Loss)
2020
$
2019
$
118,977
255,527
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has a strict code of credit, including obtaining agency credit
information, confirming references and setting appropriate credit limits. The Group obtains guarantees
where appropriate to mitigate credit risk.
The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for expected credit loss of those assets, as disclosed in the statement
of financial position and notes to the financial statements. The Group does not hold any collateral.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These
provisions are considered representative across all customers of the Group based on recent sales
experience, historical collection rates and forward-looking information that is available.
The credit quality of financial assets that are neither past due nor impaired can be assessed by
reference to external credit ratings:
Financial assets
Cash and cash equivalents (note 8)
Trade and other receivables (note 9)
Total Financial Assets
2020
$
2019
$
396,311
526,681
26,562
29,105
422,873
555,786
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(e) Liquidity risk
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Financial instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments of a
fixed period of maturity, as well as management’s expectations of the settlement period for all other
financial instruments.
Within 1
Year
$
1 to 5
Years
$
Over 5
Years
$
Total
$
Maturity analysis
Year ended 30 June 2020
Financial Assets
Cash and cash equivalents (note 8)
Financial assets at fair value through profit
or loss (note 10)
Receivables and loans (note 9 and 11)
Total financial assets
Financial liabilities
Trade and other payables (note 14)
Total financial liabilities
Net maturity
Year ended 30 June 2019
Financial Assets
396,311
600,146
26,562
1,023,019
700,512
700,512
322,507
Cash and cash equivalents (note 8)
526,681
Financial assets at fair value through profit
or loss (note 10)
Receivables and loans (note 9 and 11)
Total financial assets
Financial liabilities
Trade and other payables (note 14)
Total financial liabilities
Net maturity
(f)
Fair value estimation
1,282,895
29,105
1,838,681
625,913
625,913
1,212,768
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
396,311
600,146
26,562
- 1,023,019
-
-
700,512
700,512
-
322,507
-
526,681
- 1,282,895
-
29,105
- 1,838,681
-
-
625,913
625,913
- 1,212,768
The fair value of financial assets and liabilities must be estimated for recognition and measurement or
for disclosure purposes. The Directors consider that the carrying amount of financial assets and
financial liabilities recorded in the financial statements approximates their fair values as the carrying
value less impairment provision of trade receivables and payables are assumed to approximate their
fair values due to their short-term nature.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been
analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in
making the measurements. The fair value hierarchy consists of the following levels:
▪
▪
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable
▪
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
inputs) (Level 3).
Year ended 30 June 2020
Financial Assets:
Financial assets at fair value through profit
or loss (note 10)
Year ended 30 June 2019
Financial Assets:
Financial assets at fair value through profit
or loss (note 10)
Level 1
Level 2
Level 3
Total
$
$
$
$
594,886
5,260
-
600,146
1,277,635
5,260
- 1,282,895
26. SHARE BASED PAYMENTS
The fair value of options and performance rights granted to directors and employees is recognised as
an employee expense, with a corresponding increase in equity, over the period that the employee
becomes unconditionally entitled to the rights or options, from the grant date. The amount recognised
as an expense is adjusted to reflect the actual number of share options or performance rights that vest,
except for those that fail to vest due to their conditions not being met.
Options
No options have been granted as part of remuneration arrangements during the year ended 30 June
2020 (2019: Nil).
Performance Rights
During the financial year the Company granted performance rights as a long-term incentive to directors
which have been issued under the Performance Rights Plan. Each performance right will vest as an
entitlement to one fully paid ordinary share upon achievement of certain performance milestones. If the
performance milestones are not met, the performance rights will lapse and the eligible participants will
have no entitlement to convert the performance rights into any ordinary shares.
Performance rights are not listed and carry no dividend or voting rights. Upon exercise, each
performance right is convertible into one fully paid ordinary share to rank pari passu in all respects
with existing fully paid ordinary shares.
Movement in the performance rights for the current period is shown below:
Issue date
Expiry date
Exercise price
Number
16 September 2020
10 August 2025
Nil
9,000,000
The Performance Rights were valued on the date of grant with the following factors and assumptions
used to determine their fair value:
Grant Date
11-Aug-201
Measurement
Date
21-May-201
Expiry
Date
10-Aug-25
Issue
Date
16-Sep-20
Granted during
the year
9,000,000
Balance at
period end
9,000,000
1Performance rights granted to Directors were approved by shareholders on 11 August 2020, however the
contractual arrangement between the Company and the Board occurred on 21 May 2020 where the terms of the
performance rights were agreed.
No. Granted
Exercise
Price
Expected
Vesting
Period
Share price
on Grant
Date
Fair Value
per
Performance
Right
Total Fair
Value
9,000,000
-
21-May-20 to
20-May-23
$0.029
$0.029
$261,000
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Milestones associated with the performance rights are as follows:
d.
e.
f.
Milestone 1: The volume weighted average price of the Shares as quoted on ASX exceeds $0.05
each day for a period of not less than 20 consecutive trading days on which the Shares have
actually traded; or
Milestone 2: Gross Proceeds exceed $250,000 in any financial year; or
Milestone 3: The discovery of an “Inferred Mineral resource” (as that term is defined in the JORC
Code) at the Blackwood Gold Project having a contained gold mass of at least 300,000 ounces
at a cut-off grade of 2g/t.
(each a Performance Milestone).
Upon achieving any of the above three milestones, the performance rights will be eligible to be
converted into shares upon exercise by the holder.
As at 30 June 2020, management believe that the remaining performance and service hurdles will be
met and accordingly have recognised a share-based payment expense over the respective vesting
periods.
Total expense arising from the above performance rights is $9,534.
27. CONTIGENT ASSETS AND LIABILITIES
The Group has no contingent liabilities or assets at 30 June 2020 (30 June 2019: nil).
28. EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial years, except for the following.
General Meeting of Shareholders
On 11 August 2020, a General Meeting of Shareholders of Cauldron approved all resolutions, including
the adoption of a Performance Rights Plan, the issue of 9,000,000 (cumulative) performance rights to
directors, the adoption of an employee share option plan, the acquisition of the Blackwood Gold Project
and issue of securities to the vendor of the Blackwood Gold Project.
Issue of Securities to Acquire 51% Joint Venture Interest in Blackwood Gold Project
On 16 September 2020, having received shareholder approval and satisfied the conditions precedent
in relation to the acquisition of a 51% joint venture interest in the Blackwood Gold Project, the
Company issued the securities to the vendor (and nominees) comprising 17,000,000 fully paid ordinary
shares, 10,000,000 unlisted options having an exercise price of $0.03 and an expiry date of 16
September 2022 and 6,000,000 unlisted options having an exercise price of $0.05 and an expiry date
of 16 September 2023.
Issue of Performance Rights to Directors
On 16 September 2020, having received shareholder approval, the Company issued 9,000,000
Performance Rights to directors under the Company’s Performance Rights Plan. Each Performance
Right converts into a fully paid ordinary shares in the event of achievement of performance conditions
specified in the terms and conditions and subject to the Performance Rights Plan.
Impact of Coronavirus (COVID-19)
The impact of Coronavirus (COVID-19) pandemic is ongoing and while it has not had a material impact
on the business up to 30 June 2020, it is not practicable to estimate the potential impact, positive or
negative, after the reporting date. The situation is rapidly developing and is dependent on measures
imposed by the Australian Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
29. PARENT ENTITY DISCLOSURES
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Accumulated loss
Option premium reserve
Total equity
Financial Performance
(Loss)/profit of parent entity
Total comprehensive (loss)/profit of the parent entity
Loans to Controlled Entities
2020
$
2019
$
416,925
544,175
605,093
1,291,913
1,022,018
1,836,088
788,989
692,634
788,989
692,634
56,380,921
55,675,919
(61,956,372)
(60,340,945)
5,808,480
5,808,480
233,029
1,143,454
(1,634,616)
(3,197,797)
(1,634,616)
(3,228,685)
Loans are provided by the Parent Entity to its controlled entities for their respective operating activities.
Amounts receivable from controlled entities are non-interest bearing with no fixed term of repayment.
The eventual recovery of the loan will be dependent upon the successful commercial application of
these projects or the sale to third parties. Details of loans provided are listed below:
Subsidiaries
Ronin Energy Ltd
Cauldron Minerals Ltd
Jakaranda Minerals Ltd
Raven Minerals Ltd
2020
$
2019
$
23,329
23,329
8,900,347
8,880,764
1,411,055
1,410,255
25,775
25,775
Total value of loans provided to subsidiaries
10,360,506
10,340,123
Commitments
The commitments of the Parent Entity are consistent with the Group (refer to note 23).
Contingent Liabilities and Assets
The contingent liabilities and assets of the Parent Entity are consistent with those of the Group, refer
note 27.
45
CAULDRON ENERGY LIMITED
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2020
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Cauldron Energy Limited, I state that:
1.
In the opinion of the directors:
(a)
the financial statements and notes set out on pages 16 to 45 and the Directors’ Report are
in accordance with the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2020 and
of its performance for the year ended on that date; and
complying with Australian Accounting Standards, the Corporations Regulations
2001 and other mandatory professional reporting requirements; and
(b)
there are reasonable grounds to believe that the Group will be able to pay its debts as and
when they become due and payable.
2. The Directors draw attention to Note 1 to the financial statements, which includes a statement
of compliance with International Financial Reporting Standards.
3. The Directors have been given the declarations by the chief executive officer and chief financial
officer for the year ended 30 June 2020 required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Mr Simon Youds
Chairman
30 September 2020
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Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Cauldron Energy Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cauldron Energy Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
47
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Material uncertainty related to going concern
We draw attention to Note 1(w) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
group’s ability to continue as a going concern and therefore the group may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Accounting for share-based payments
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2020, the
Our procedures included, but were not limited to the
Group agreed to issue performance rights to key
following:
management personnel, which have been accounted
for as share-based payments as disclosed in Note 26 of
the financial report.
·
Reviewing the relevant agreements to obtain an
understanding of the contractual nature and
terms and conditions of the share-based payment
Refer to Note 1(s) and Note 1(t) of the financial report
arrangements;
for a description of the accounting policy and
significant estimates and judgements applied to these
arrangements.
Share-based payments are a complex accounting area
and due to the complex and judgemental estimates
used in determining the fair value of the share-based
payments, we consider the accounting for share-based
payments to be a key audit matter.
·
Holding discussions with management to
understand the share-based payment transactions
in place;
·
Reviewing management’s determination of the
fair value of the share-based payments granted,
considering the appropriateness of the valuation
methodology used;
·
Assessing the allocation of the share-based
payment expense over the relevant vesting
period; and
·
Assessing the adequacy of the related disclosures
in Note 1(s), Note 1(t) and Note 26 of the
financial report.
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Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2020, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
49
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 3 to 6 of the directors’ report for the
year ended 30 June 2020.
In our opinion, the Remuneration Report of Cauldron Energy Limited, for the year ended 30 June 2020
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth, 30 September 2020
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CAULDRON ENERGY LIMITED
ASX ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2020
ASX ADDITIONAL INFORMATION
Additional information required by ASX Listing Rules and not shown elsewhere in the report is set out
below. The information is current as of 31 August 2020.
1.
CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement is available on the corporate governance page on
the Company’s website at http://cauldronenergy.com.au/our-company/corporate-governance/.
2.
SHAREHOLDING AS AT 31 AUGUST 2020
Cumulative number of fully paid ordinary shares on issue
376,289,835
3.
SUBSTANTIAL HOLDERS AS AT 31 AUGUST 2020
The names of the substantial shareholders listed in the Company’s register as at 31 August 2020
were:
Shareholder
Dempsey Resources Pty Ltd
Mr Derong Qiu
Joseph Energy (Hong Kong) Limited
Starry World Investment Ltd
Sky Shiner Investment Ltd
Yidi Tao
Dekang Qiu
Number of
shares held
52,470,036
47,544,710
41,205,500
33,898,318
31,400,000
31,250,000
30,000,000
4.
DISTRIBUTION OF EQUITY SECURITIES AS AT 31 AUGUST 2020
The distribution of members and their holdings of securities in the Company as at 31 August 2020
were as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TOTAL
Number of
shareholders
187
413
241
381
125
Fully Paid
Ordinary Shares
83,917
1,077,309
1,926,134
13,553,938
359,648,447
1,347
376,289,835
5.
UN-MARKETABLE PARCELS AS AT 31 AUGUST 2020
As at 31 August 2020, there were 949 holders (each holding less than 17,241 fully paid ordinary
shares) or less than a marketable parcel of ordinary shares. In cumulative, the number of shares held
by holders of unmarketable parcels totalled 4,561,456.
6.
UN-QUOTED SECURITIES AS AT 31 AUGUST 2020
Class
Exercise
Price
Issue
Date
Expiry
Date
No. of
Securities
No. of
Holders
Name (where
holder holds >20%)
Number held
(%)
Unlisted
Options
Unlisted
Options
$0.03
23-Dec-19
31-Dec-21
6,833,395
11
Doone McDougall
1,889,0000
(28%)
WJ Armsrong
Superfund Pty Ltd
1,666,666
(24%)
$0.03
24-Mar-20
31-Mar-22
16,666,666
7
Derong Qui
15,000,000
(90%)
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CAULDRON ENERGY LIMITED
ASX ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2020
7.
TWENTY LARGEST SHAREHOLDERS AS AT 31 AUGUST 2020
The names of the twenty largest holders of ordinary fully paid shares at 31 August 2020 are set out
below:
Name
Dempsey Resources Pty Ltd
Mr Derong Qiu
Joseph Energy (Hong Kong) Limited
Starry World Investment Ltd
Sky Shiner Investment Ltd
Yidi Tao
Dekang Qiu
Citicorp Nominees Pty Ltd
M & K Korkidas Pty Ltd
Capeline Nominees Pty Ltd
Doone Lee McDougall
BNP Paribas Nominees Pty Ltd
Armstrong Constructions (Vic) Pty Ltd
Okewood Pty Ltd
Lanoti Pty Ltd
Sams Watchmaker Jeweller Pty Ltd
Mr Yuanrong Luo
JP Morgan Nominees Australia
Blackwood Gold Mines Pty Ltd
Canifare Pty Ltd
8.
VOTING RIGHTS
Ordinary Shares:
Number of
ordinary
shares held
52,470,036
47,544,710
41,205,500
33,898,318
31,400,000
31,250,000
30,000,000
10,247,485
4,415,000
4,172,864
3,778,000
3,386,039
3,333,333
3,300,000
3,203,775
3,100,000
2,726,257
2,590,215
2,333,533
2,017,450
% of
issued
shares
13.94%
12.64%
10.95%
9.01%
8.35%
8.30%
7.97%
2.72%
1.17%
1.11%
1.00%
0.90%
0.89%
0.88%
0.85%
0.82%
0.73%
0.69%
0.62%
0.54%
316,372,515
84.08%
In accordance with the Company’s Constitution, on a show of hands every member present in person
or by proxy or attorney or duly authorised representative has one vote. On a poll every member
present in person or by proxy or attorney or duly authorised representative has one vote for every
fully paid ordinary share held.
Options:
Holders of options do not have a right to vote.
9.
RESTRICTED SECURITIES
The Company has no restricted securities on issue.
52
CAULDRON ENERGY LIMITED
ASX ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2020
10.
INTERESTS IN TENEMENTS
Tenement Reference
Project & Location
Interest
E08/1489
E08/1490
E08/1493
E08/1501
E08/2017
E08/2081
E08/2205
E08/2385
E08/2386
E08/2387
E08/2774
E08/3088
393/2010
140/2007
141/2007
142/2007
143/2007
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
144/2007-581/2009
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
176/1997
232/2007
270/1995
271/1995
43/2007
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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y
n
o
e
s
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l
a
n
o
s
r
e
p
r
o
F
53